Smart Port Management and Strategy

By Nam Kyu Park

A smart port is defined as a port that uses technologies such as big data, AI, and IoT to manage transportation and logistics services. Smart Port Management and Strategy covers the design, operation and applications of a smart port to improve capacity and productivity. The book has been written by the author from an operations management perspective with the aim of providing technical knowledge to readers on how to use technology for optimizing port performance.

Key Features:

- Eight key topics relevant to smart port management

- Focus on calculations and technical operations

- Guidance on OCR, RFID and sensor technologies for gates

- Includes information about port performance measurement

- Includes access to Korean Port MIS

- Covers automation equipment such as AGV, ARMGC, and remote control QC

- Includes port simulation, digitization strategies and financial analysis

Smart Port Management and Strategy is the definitive resource for anyone, whether they are professionals in transportation services or students of civil engineering or operations management, who want to learn about smart ports and how they are managed.

• Language: English
• Publisher: Bentham Science Publishers
• Release date: Apr 15, 2022
• ISBN: 9789815050417

Book preview

PREFACE

Nam Kyu Park

International Logistics Department,

Tong Myong University,

South Korea

[e-mail]

Although discussions on smart ports have been steadily unfolding, most of them have been organized around concepts and technology. This book has been described in terms of the design, operation and strategy of smart port to improve the capacity and productivity.

Smart port is known as economic entity that improves services by applying 4th industrial revolution technologies such as sense, IoT, AI, robot, big data, and 5G communication to the traditional port management field. This technology entrusts the work of humans to robots and AI to make full use of the new strategy. Furthermore, the emergence of these new technology is also affecting changes in design and management practices.

Smart port consists of four main areas like operation, energy, environment, safety and security. Energy, environment and safety are closely linked to port automation. The energy used in the automated terminal is electricity, and the resulting environment is naturally improved. In addition, since it operates without people, safety is guaranteed. Apart from energy, environment, safety and security, all that remain in smart ports is port automation with robotic equipment and digital platform.

Since digitization and automation are basic requirements for smart ports, terminal design, equipment specifications, the number of required equipment like Quay Crane, AGV and ASC etc. and the digital platform for PPI (Port Performance Indicator) emerges as important topics.

In 2021, advanced ports are trying to meet the standards of productivity, safety and environment by building an automated terminal. The United States, Netherlands, Germany and China have already built automated terminals to achieve the improvement of productivity, safety and environment. However, the degree of achievement of the technology is still ongoing. Even if the author himself cannot predict how much the technology will develop, he tries to explain the strategy, design and operation in order to pursue the supreme status that smart port aims.

In general, a smart port is defined as a port that uses technologies such as big data, AI, and IoT, but the author does not focus on technology itself. If you go through the eight themes in this book, you will find that this technique is naturally incorporated into each subject. Viewing the complex system of ports as a simple application of technology does not properly explain smart ports.

When IoT technology is applied to a truck, it automatically identifies which truck it is and where it is currently. If this is attached to the container, what is the temperature and humidity of the cargo loaded into the container? Has the container been shipped? It will help you figure out where the container is now. Such a technology has already been tested on its own and is entering the stage of practical use. This book deals with gates to which OCR, RFID, and sensor technologies are applied in Chapter 2, 3, and 6.

Big data technology is also applied in this book. Port performance measurement in Chapter 5 is impossible without big data. Analysis technology is also important for big data, but a social system that collects it should be the premise. Fortunately, this book has provided access to Port-MIS, which is owned by the Korean government, allowing millions of data to be collected and analyzed. In addition, the friendly TOC was willing to provide terminal operation data for three years.

Robotic technology is being applied to smart ports. In Chapter 2, AGV and ASC are robots applied to port operation. This book does not explain the mechanical properties of robots. These transport equipment and loading/unloading equipment are being deployed on the premise that they are supplied by specialized companies.

AI is a technology that allows machines to replace human thinking systems. It consists of various areas such as automated reasoning and inference, machine learning and deep learning, knowledge reasoning, representation and discovery, and natural language. This chapter 7 deals with the operating system of an automated terminal. AI technology that commands and controls automation equipment such as AGV, ASC, and remote control QC is applied. Since the purpose of this book is how to create a smart port that maximizes productivity, efficiency, and capacity, it does not deal with these unique theories concerning AI.

The layout of the smart port needs to be evaluated by various factors such as cost, capacity, productivity and congestion. Simulation gives insight into solving this problem. The validity of the terminal design, the validity of the required number of equipment, and the waiting time are verified only through simulation. In this book, I would like to introduce the method revealed through experience.

CONSENT FOR PUBLICATION

Not applicable.

CONFLICT OF INTEREST

The author declares no conflict of interest, financial or otherwise.

Acknowledgments

The author appreciates ZPMC for providing precious material in writing.

Nam Kyu Park

International Logistics Department

Tong Myong University

South Korea

Strategy of Smart Port

Nam-Kyu Park

Abstract

Smart ports are defined from a variety of perspectives. Smart ports are automated, logistics optimization, energy-efficient, the eco-friendly and innovative port through the innovation of information technologies such as the Internet of Things (IoT), big data, and artificial intelligence (AI). Smart ports are expanding their boundaries to the city in order to strengthen the connection. Furthermore, smart ports organically connect all related resources by acting as a hub for information flow to collect, process, analyze and share data. We need deep insight into the question of what the future be like. This chapter aims to answer two questions: what is a smart port, and how are they prepared to become a smart port? What is the strategy for the smartization of advanced ports?

Keywords: Artificial intelligence (AI), Automated port, Eco-friendly port, Energy-efficient port, Internet of Things (IoT), Logistics optimization, Smart port.

1. INTRODUCTION

The port competitiveness was to attract more ships, cargo, and shippers until now. However, as the supply of ships overflowed and the recession continued, a new survival strategy was needed.

The trend of larger ships called Megamax is irreversible and directly impacts container ports. The enlargement of ships inevitably leads to an explosive increase in the volume of cargo that must be handled at the port. At this point, the reduction of terminal operating costs has emerged as a new concern for the port, and smart ports that combine ICT (Information Communication and Technology) such as big data and IoT (Internet of Things) are attracting attention as a solution.

Many experts have referred to the Fully Automated Container Terminal as a substitute that responds to the emergence of super-large ships. The fully automated container terminal is a port where all tasks are performed by automated machines and is operated through robots and intelligent computers.

Therefore, safer and more efficient operation is possible than human operation. The concept of a fully unmanned automated container terminal emerged long before the smart port was used universally.

As the number of mega-ships continues to increase, the design criteria should be considered up to 25,000 TEU class ships when improving existing ports or constructing new ports. This means not just increasing the size of land but also having a stable terminal operation system (TOS), that is, a smart operating system.

The fully automated container terminal was chosen to satisfy the service demanded by shipping companies operating ultra-large container ships because the fully automated container terminal can increase productivity by 30% to 40% compared to existing terminals.

Recent issues surrounding the port are space constraints, degrading productivity, financial limitation, and the necessity of environmental protection, in addition to servicing mega-ships. It is a smart port that fits perfectly with this trend of the times. This is because the goal of smart ports is to efficiently operate ports without wasting space, time, capital and natural resources.

In addition to the advantages of reducing labor costs and port operation costs, the fully automated container terminal also uses eco-friendly equipment that uses electricity or battery without emissions such as greenhouse gases.

One of the backgrounds leading to the introduction of smart ports is the recent environmental change that requires sharing information between the logistics stakeholders. With the development of information technology, a large amount of information that was unimaginable in the past is gathering in ports. The issue of opening and sharing this information with shippers and port-related companies such as shipping agencies, terminals, and regional service companies has become a trend that determines the competitiveness of future ports.

2. THE CONCEPT OF SMART PORT

Smart ports have developed through the stages of U (Ubiquitous) Port, Intelligent Port, and Automated Port. Recently, the concept by PA (Port Authority) and researchers regarding smart port is defined as follows.

The HPA (Hamburg Port Authority) defines a smart port that not only achieves sustainable economic growth but also improves the quality of life by minimizing environmental impacts. HPA focuses on state-of-the-art digital intelligence to ensure a smooth and efficient operation for smart PORT concept. HPA uses sense technology, analysis, forecasting and information systems for increases in efficiency, economic growth, customers benefit while minimizing environmental impact (Hamburg Port Authority, 2021).

The Maritime and Port Authority of Singapore (MPA) suggested that smart port would use mobile technology and wireless connectivity to enhance communications, productivity, and maritime crew welfare in the Port of Singapore. Utilizing the technology of smart devices, sensors and IoT, MPA has tried the port to be a more interconnected port with high-speed network, innovative use of data analytics, and mobile solutions to enhance its overall competitiveness that will benefit all users and customers (The Maritime Executive, 2015).

The port of Antwerp is strategizing by separating the area of smart port, energy, and transportation. Smart port is defined as the application of block chain, augmented reality (AR), artificial intelligence (AI) and machine learning (ML) to the port to fully control and manage the port remotely (Port of Antwerp, 2021).

MedMaritime proposed that the smart port concept addresses three main types of issues related to operational, energy, and environmental aspects. They suggested 23 criteria and 68 key performance indicators (KPIs) for smart port operation. (MedMaritime SMART PORT, 2016).

Deloitte suggests a smart port is developing solutions to address the current and future challenges faced by seaports, including spatial constraints, pressure on productivity, fiscal limitations, safety and security risks and sustainability (Berns et al., 2017). They divided the evolution of the port into four generation stages (Table 1.1): The first generation port is a loading and unloading port until the 1960s. The second generation port is an industrial port until 1980s. The third generation port is a logistics and supply chain port (post 1980s). The 4th generation is the smart port after 2010. A true Smart Port will need to take advantage of its position in the supply chain to add value with the improved use of the data. They suggested that smart port would implement port terminal integration, port-city integration, integration of ports, and the wider supply chain.

Table 1.1 Port development phase.

Port Technology focuses on automation and innovative technologies including AI, Big Data, IoT and Blockchain to improve port performance. The evolution to smart paramount task today with the changing demands of global trade: ships are getting bigger; goods are moving faster; and geopolitical issues are creating new challenges for ports all around the world. Port industry has already implemented new technologies such as Digital Twins, cargo flow optimisation and visualisation - giving customers end-to-end transparency of their cargo’s journey through the supply - and the emergence of 5G’s low latency and faster connectivity to improve port operations. (Port Technology, 2016).

In the same context, smart port can be broadly defined as a new port development concept that aims to use the revolution in ICT, including data analytics, sensors, smart devices, networks, to improve the port’s overall operations and increase recurring revenue; while at the same time, lowering the cost of operation and reducing the impact to the environment. The ideal smart port is when it is operating in a predictive state (predictability) that is well connected with its users, including stakeholders of the whole value chain (connectivity), and continuing to use technology and data to improve the running of the port (sustainability) (Tan J., 2016).

Saxe et al. suggest digitizing processes in and between seaports leads to a network of seaports that transfers the smart PORT concept to the entire maritime logistics chain, meaning the collaboration and connection of individual Smart Ports (Saxe et al., 2017).

The concept of smart port can be defined in various ways, as summarized in Table 1.2. In summary, smart port is the process of digitalization to increase the performance of the area of port operation, energy, environment, and safety and security. On the other hand, the concept of smart port can be expanded to the process of collaboration, connection and integration between port and port, city and port, port and multimodal transport through digitalization process.

Table 1.2 Summary of smart port concept.